91,843 Companies Face Delisting Over Failure to File Annual Returns

The Corporate Affairs Commission (CAC) is poised to delist 91,843 companies for their failure to submit annual returns.

This follows the commission’s earlier warning that 100,000 registered companies could face removal from its database for neglecting this statutory obligation.

The CAC’s stringent enforcement measures come in the wake of persistent non-compliance by numerous companies, signaling a significant crackdown on entities neglecting their reporting responsibilities.

According to the Registrar-General and Chief Executive Officer of CAC, Garba Abubakar, the affected companies will be struck off the register, as outlined in section 692 of the Companies and Allied Matters Act 2020.

Initially, the CAC had announced its intention to remove 100,000 companies, but the updated list now stands at 91,843, indicating some companies might have rectified their non-compliance or are in the process of doing so.

In July, Abubakar emphasized that the commission would follow due process by sending notices of striking off to the affected companies before taking any action.

Section 692 of the CAMA, 2020, empowers the CAC to take such action against companies that fail to file an annual return.

In its latest update on December 5, the CAC stated, “Companies who filed complete annual returns in response to the earlier publication are advised to confirm removal from the list of Companies to be struck off.”

The updated list is available on the CAC’s official website.

Companies that have corrected their filing status but find their names still on the delisting list have been urged to send evidence of filing to compliance@cac.gov.ng within 30 days.

The CAC emphasized that it is unlawful for any delisted company to conduct business until its name is reinstated through an order of the Federal High Court.

The delisting initiative underscores the CAC’s commitment to upholding regulatory standards, ensuring corporate accountability, and streamlining the business landscape for entities that adhere to statutory obligations.

The General Public is reminded that delisting doesn’t absolve companies of liabilities under the Act, and directors of delisted companies may still be held accountable for any infractions.

As the deadline for compliance looms, companies are urged to promptly address their filing status to avoid potential removal from the register.